Amazon Buys Whole Foods

In what is being called a blockbuster of a deal, e-commerce giant Amazon will acquire Whole Foods Market Inc. for $13.7 billion, including debt. The deal will see Amazon in hundreds of physical stores across the country as it fulfills the e-commerce company’s goal of selling more groceries to the public. The deal is expected to close in the second half of 2017, with Amazon reportedly paying $42 a share, according to Bloomberg.

The deal is much larger than Amazon’s previous acquisition of video-game service Twitch Interactive for $970 million in 2014. John Mackey, Whole Foods’ outspoken co-founder, will remain as the CEO of Whole Foods, a position that gives him a victory after his battle with activist investor Jana Partners, who threatened to topple his position in the company.

“Whole Foods Market will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world. John Mackey will remain as CEO and Whole Foods Market’s headquarters will stay in Austin, Texas,” according to the press release.